Alert: Adjustment – CAT

Ticker: CAT
Price: $211.44
Date: 5/2/23 1:15 pm
Underlying: Caterpillar

Master Portfolio Contracts: 10

Notes: 

Some of you have been assigned the short 235 put, we are hearing partial fills or in some cases on all contracts. 
 
We are actively trying to manage this position back to a break even or smaller loss and even with the assignment will continue to work on it. Unfortunately the gap down in the market is not helping with that management. 
 
This is a 2-3 step adjustment depending on if you were assigned.
Trade Detail:
For those who were assigned (all 235 puts):
Trade Action 1: Sell the shares at the market to close your long stock position. Sell as many shares as you were assigned. 
 
Trade Action Action 2: After closing stock, sell puts for a credit of around 3.25 – 3.50
STO the 12 May 210 puts 
 

For those who were assigned (some, but not all 235 puts):

Trade Action 1: Sell the shares at the market to close your long stock position. Sell as many shares as you were assigned. 
 
Trade Action Action 2: After closing stock, sell puts for a credit of around 3.25 – 3.50
STO the 12 May 210 puts 
Sell as many puts as you have open long puts to cover
 

Trade Action 3: Roll your remaining 12 May 235 puts to the 26 May 235 puts for a credit of around 0.15
BTC the 12 May 235 puts
STO the 26 May 235 puts
Sell as many puts as you have remaining of the 235 puts

 
For those who were not assigned:
TRADE ACTION: Roll your 12 May 235 put to the 26 May 235 puts for a credit of around 0.15
BTC the 12 May 235 puts
STO the 26 May 235 puts 
 
The master portfolio is trading 10 contracts. 
 
Trade smart and track your cost basis now, those that were assigned will have a different cost basis. 

Position After Trade Detail (assuming not assigned shares):

-10 CAT 26-MAY 235 put
+10 CAT 16-JUN 230 put
+10 CAT 16-JUN 210 put
-10 CAT 12-May 210 put